SOURCE: Aberdeen Group

June 05, 2008 13:30 ET

Best-in-Class Companies Improve Return on Marketing Investment (ROMI) Through Use of Predictive Analytic Capabilities

Best-in-Class Companies Achieve 3.5x ROMI vs.1.4x Among Industry Average Peers, and -0.9x Among Laggard Companies

BOSTON, MA--(Marketwire - June 5, 2008) - Aberdeen, a Harte-Hanks Company (NYSE: HHS), revealed today that Best-in-Class (BIC) companies -- those performing in the top 20% of all research survey respondents -- have taken multiple approaches to becoming more predictive and improving performance. These approaches include several areas of the business:

--  Customer management -- The need to increase customer satisfaction,
    retention, up-sell / cross-sell opportunities
--  Risk management -- The ability to predict harmful events before they
    occur, and uncover financial anomalies and fraudulent behavior before it
    affects performance
--  Process management -- The establishment of process analysis measures
    that allow for the prediction of process changes that will yield new
    efficiencies and performance improvement
--  Growth management -- Understanding the effects of growth on the
    business before they happen; this includes activities such as workforce
    planning, supply chain management, and infrastructure planning
--  Product planning -- The ability to understand market and customer
    demand earlier in order to increase speed to market and establish
    positioning, pricing, and market awareness before the competition

According to research presented in a new report, "Predictive analytics: The BI Crystal Ball," Best-in-Class companies have improved visibility of predictive analytic measures to management at a mean average rate of 36% increase in the past 12 months, versus 9% among Industry Average companies, and -1% among Laggards. Additionally, fifty-nine percent (59%) of Best-in-Class companies receive information for predictive analysis within a business day or less from actual business activity, versus 45% of all other respondents combined.

"Increasingly, companies are realizing the value of using data and information to align their current actions with their future objectives," said David Hatch, Research Director of Aberdeen's Business Intelligence Practice. "Organizations are under pressure to predict the future more accurately than ever before, both in terms of becoming more proactive within shifting market dynamics, and achieving improved performance through a better understanding of customer behaviors and attitudes, assessment of risk, improvement of process efficiencies, and planning for product development, pricing, and market positioning."

Aberdeen research found that the top pressure driving companies to evaluate and invest in predictive technologies and capabilities was the need to elevate customer satisfaction and loyalty. Understanding the customer, and applying that knowledge to marketing, sales, and customer service activity is not a new concept, but the technologies available today to perform these tasks within a predictive environment are increasingly effective. This is evidenced by the current and planned investments that Best-in-Class companies are making, and the performance results they have achieved. The underlying technologies involved are complex and often involve the rapid movement and manipulation of massive amounts of data. Aberdeen's report cautions end-users to carefully consider options, and realize the ramifications across the architecture and infrastructure of information systems as part of the equation.

A complimentary copy of this report is made available due in part by the following underwriters: IBM and Nielsen. To obtain a complimentary copy of the report, visit:

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to

© 2008 Aberdeen Group, Inc., a Harte-Hanks Company
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